Michael Egorov, the founder of Curve, recently faced a significant liquidation of $882,000. This happened because the CRV token dropped by 12%. On December 19, 2024, he explained that this liquidation was linked to the uWu hack from June. He referred to it as a "receipt of Sifu's promise to repay the hacked funds."
Over the past 72 hours, the total value locked (TVL) on Curve Finance decreased from $3.5 billion to $3.25 billion. This drop is notable and reflects the current state of the market.
Egorov’s liquidation involved 918,830 CRV tokens, valued at $882,000. Earlier this year, he had already experienced massive liquidations after borrowing funds to buy CRV in an effort to support its price. In June alone, he faced $140 million in total liquidations.
Just two days before the liquidation, on December 17, he made a purchase worth $1.2 million when CRV was trading at $1.11. Unfortunately, it fell to around $0.91 by Thursday.
After the liquidation, Egorov took to social media to clarify the situation. He reiterated that the liquidated CRV was connected to the uWu hack and emphasized that it was merely fulfilling a promise regarding the repayment of the stolen funds.
Despite his explanation, CRV continued to struggle. It significantly underperformed compared to the CoinDesk 20 Index, which was down by 4.81%. In contrast, CRV itself saw a decline of 12%.
The TVL on the Curve platform, which had been at $3.5 billion on December 16, dropped to $3.25 billion by Thursday. This decline is largely attributed to falling asset prices.
Oliver Knight, who co-leads CoinDesk’s data tokens and data team, has a solid background in the crypto space. Before joining CoinDesk in 2022, he was the chief reporter at Coin Rivet. He began investing in Bitcoin in 2013 and has experience working at a market-making firm in the UK. Currently, he does not hold any cryptocurrency.